This has been a significant week for investors banking on the inevitable growth of artificial intelligence. Nvidia released earnings that surpassed expectations after the U.S. market closed on Wednesday, showing remarkable results with \(22.1 billion in revenue, a 23% increase over the previous quarter and a 265% surge year-over-year. The data center business division responsible for AI products experienced a revenue rise to \)18.4 billion from $14.5 billion quarter-over-quarter, with margins reaching an impressive 72%.
Looking ahead, Nvidia projects revenue of $24 billion and a margin of 77% for the next quarter, indicating a sustained demand for AI computing. The company’s performance underscores the continuous and escalating need for AI technology, contradicting any assertions that this trend is temporary or insignificant.
In a parallel development, Intel hosted its inaugural chip foundry event in San Jose, Calif., emphasizing its commitment to meeting the global demand for AI chips. Intel’s CEO, Pat Gelsinger, articulated the company’s goal to fulfill the world’s requirement for AI chips, positioning Intel as a key player in this expanding market. The event highlighted Intel’s strategic shift towards becoming a leading provider of AI chips, collaborating with industry giants like Nvidia, Arm Holdings, Microsoft, and others to enhance its position in the AI ecosystem.
Intel’s partnership with Arm is particularly noteworthy, as Arm CPUs are integral components in a significant portion of chips produced globally. By focusing on manufacturing best-in-class Arm-based silicon, Intel aims to secure a strong foothold in the AI chip production segment, even at the expense of x86 market share.
The symbiotic relationship between Nvidia’s success and Intel’s dedication to AI chip production bodes well for the broader AI market. Companies like AMD, Qualcomm, IBM, Alphabet, and Meta Platforms stand to benefit from the industry’s growth, as the demand for AI-powered devices and infrastructure continues to rise. This trend signals a promising future for AI technology across various sectors, driving the need for AI acceleration in consumer devices and servers for AI model training and data processing.
